Developer sues former marketing director

Harlem Irving alleges she should have to return almost $700,000 in compensation because she was disloyal during the time she earned it.

Harlem Irving Cos. has sued its former marketing director, alleging she should have to return almost $700,000 in compensation because she was disloyal during the time she earned it.

The developer also alleges that the former employee, Edan Gelt of Palatine, used company money to fund private companies and that one of those companies provided services to Harlem Irving competitors.

In her position at Harlem Irving, Gelt had discretion and authority to manage an annual budget of more than $800,000, according to a complaint filed last month in Cook County. Harlem Irving says she should return at least $670,000 in compensation, alleging she received it while being disloyal to the company, said lawyer Daniel Mathless, who is representing Harlem Irving.

“This is primarily a case about disloyalty,” Mathless said. “If (employees) are being disloyal, then there's a line of cases that say they're not entitled to keep their compensation.”

In addition, Gelt stole more than $100,000 via fraudulent misrepresentations like falsified expense reports and vendor invoices, according to the complaint, which says she used that money to fund private projects.

The complaint says Gelt used Irving Harlem money to fund side company 7Ate9 Marketing, which she runs out of her home. Gelt provided marketing services to Harlem Irving competitors through 7Ate9, the complaint says.

Harlem Irving wants a court to determine which is greater: Gelt's gains or the company's losses and award Harlem Irving the higher amount.

The lawsuit also names Gelt's husband, Gene Khalimsky.

In an email, lawyers for the defendants wrote, “(Harlem Irving's) dispute with its former employee, Edan Gelt, has nothing to do whatsoever with her husband, Gene Khalimsky, and the other defendants, who (Harlem Irving) indiscriminately sued based on allegations of 'information and belief,' meaning speculation.”

Apart from Gelt and Khalimsky, the other named defendants are corporate entities.

“Mr. Khalimsky categorically denies the claims against him and intends to seek” to have them dismissed, wrote the lawyers, Thomas M. Leinenweber and James V. Daffada of Leinenweber Baroni & Daffada.

Gelt “disputes and will contest liability to (Harlem Irving) under its lawsuit. Any potential liability she may have had to HIC was satisfied fully last year, a fact the lawsuit conspicuously fails to mention,” the email says, adding that “our clients will address and defend fully (Harlem Irving's) complaint.”

Mathless, Harlem Irving's lawyer, said Gelt provided the company a check for some but not nearly all of the money.